Abstract Tubular solid oxide fuel cells (TSOFCs) generate high-grade waste heat during operation, but the existing waste heat recovery technologies designed for flat solid oxide fuel cells cannot be directly applied to TSOFC due to the geometry mismatch. To efficient harvest the waste heat, a new geometry-matching hybrid system including TSOFC and annular thermoelectric generator (ATEG) is synergistically integrated to evaluate the performance upper limit. A mathematical model is formulated and verified to describe the hybrid system by considering various thermodynamic-electrochemical irreversible effects. Key performance indicators are established to assess the potential performance. Calculations show that the peak power density and corresponding efficiency of the proposed system are enhanced by 20.39 % and 13.89 %, respectively, compared to a standalone TSOFC. Furthermore, the exergy destruction rate is reduced by 7.04 %. Extensive sensitivity analyses indicate that higher operating temperatures enhance the system’s performance, while larger electrode tortuosity negatively affects it. Additionally, various optimization paths of ATEG are explored to improve the system performance, including considerations such as the number of thermocouples, leg radial width, leg thickness, or annular shape parameter. The three-objective optimization yields an efficient design solution for the entire system, offering valuable insights for its design and operation.